InnerWorkings Announces First Quarter 2015 Results
Revenue climbs 6% and Adjusted EBITDA grows 13% in constant currency; four new enterprise client agreements signed
First Quarter Highlights
-
Revenue was
$242.1 million as reported and$256.7 million in constant currency, reflecting 6% growth in constant currency over$241.5 million in the first quarter of 2014.
-
Non-GAAP Adjusted EBITDA was
$9.5 million as reported and$9.6 million in constant currency, reflecting 13% growth in constant currency over$8.5 million in the first quarter of 2014. -
Non-GAAP diluted earnings per share were
$0.03 , compared to Non-GAAP diluted earnings per share of$0.02 in the first quarter of 2014. GAAP diluted earnings per share were$0.02 , compared to GAAP diluted earnings per share of$0.01 in the first quarter of 2014.
"We are pleased to announce we have added four new enterprise clients in
recent weeks, which brings the expected value of new enterprise
agreements signed in 2015 to over
Additional Highlights
- A new enterprise client agreement was signed with the leading brand of children's clothing, gifts and accessories in the U.S. The agreement includes in-store signage and direct mail, supporting all 800+ owned stores nationwide.
- A new enterprise agreement was signed with an international children's charity to manage the direct mail marketing efforts associated with their fundraising campaign.
- A new enterprise agreement was signed with a large pizza chain franchisor and operator with over 1,400 locations in the U.S. to manage in-store marketing materials.
- A new enterprise agreement was signed with a large financial services company operating over 300 retail locations in the U.S. to manage signage, point of sale materials, direct mail, an e-store, warehousing and fulfillment.
"Our bottom-line results reflect our ongoing efforts to improve our
operating margins, a trend we expect will continue as we add new
enterprise clients," said
Outlook
The Company reaffirms its 2015 revenue guidance of 8% to 11% growth over
2014 in constant currency. The Company reaffirms its 2015 Non-GAAP
Adjusted EBITDA guidance of
Conference Call
The management team will host a conference call to discuss the Company's
first quarter 2015 results, which will be broadcast live on
To access the conference call by telephone, interested parties may dial
(877) 771-7024. Interested parties are also invited to listen to the
live webcast by visiting the Investor "Events & Presentations" section
of
Non-GAAP Financial Measures
This press release includes the following financial measures defined as
"non-GAAP financial measures" by the
Forward-Looking Statements
This release contains statements relating to future results. These
statements are forward- looking statements under the federal securities
laws. We can give no assurance that any future results discussed in
these statements will be achieved. Any forward-looking statements
represent our views only as of today and should not be relied upon as
representing our views as of any subsequent date. These statements are
subject to a variety of risks and uncertainties that could cause our
actual results to differ materially from the statements contained in
this release. For a discussion of important factors that could affect
our actual results, please refer to our
About
Condensed Consolidated Statements of Income | |||||||||
Three Months Ended |
|||||||||
2015 | 2014 | ||||||||
Revenue | $ | 242,095,497 | $ | 241,489,664 | |||||
Cost of goods sold | 187,030,793 | 186,905,270 | |||||||
Gross profit | 55,064,704 | 54,584,394 | |||||||
Operating expenses: | |||||||||
Selling, general and administrative expenses | 47,647,330 | 49,571,481 | |||||||
Depreciation and amortization | 4,090,938 | 4,170,716 | |||||||
Change in fair value of contingent consideration | 313,233 | (695,177 | ) | ||||||
Income from operations | 3,013,203 | 1,537,374 | |||||||
Total other expense | (1,039,789 | ) | (1,115,673 | ) | |||||
Income before income taxes | 1,973,414 | 421,701 | |||||||
Income tax expense | 834,694 | 132,294 | |||||||
Net income | $ | 1,138,720 | $ | 289,407 | |||||
Basic earnings per share | $ | 0.02 | $ | 0.01 | |||||
Diluted earnings per share | $ | 0.02 | $ | 0.01 | |||||
Weighted average shares outstanding, basic | 52,753,621 | 51,312,649 | |||||||
Weighted average shares outstanding, diluted | 53,878,697 | 52,189,091 | |||||||
Condensed Consolidated Balance Sheets | ||||||
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|
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2015 | 2014 | |||||
Cash and cash equivalents | $ | 13,406,040 | $ | 22,577,942 | ||
Accounts receivable, net of allowance for doubtful accounts | 178,595,264 | 179,465,922 | ||||
Unbilled revenue | 35,646,695 | 31,698,924 | ||||
Inventories | 33,651,592 | 27,162,642 | ||||
Prepaid expenses | 12,765,069 | 12,684,237 | ||||
Other current assets | 27,113,449 | 30,638,030 | ||||
Total long-term assets | 322,850,515 | 327,022,683 | ||||
Total assets | $ | 624,028,624 | $ | 631,250,380 | ||
Accounts payable | $ | 140,194,670 | $ | 144,044,592 | ||
Other current liabilities | 50,388,725 | 50,107,105 | ||||
Revolving credit facility | 110,118,500 | 104,538,750 | ||||
Other long-term liabilities | 33,758,416 | 36,413,364 | ||||
Total stockholders' equity | 289,568,313 | 296,146,569 | ||||
Total liabilities and stockholders' equity | $ | 624,028,624 | $ | 631,250,380 | ||
Cash Flow Data | ||||||||
Three Months Ended |
||||||||
2015 | 2014 | |||||||
Net cash used in operating activities | $ | (6,275,596 | ) | $ | (8,408,343 | ) | ||
Net cash used in investing activities | (3,718,679 | ) | (4,483,271 | ) | ||||
Net cash provided by financing activities | 1,670,870 | 15,431,352 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (848,497 | ) | (22,449 | ) | ||||
(Decrease) increase in cash and cash equivalents | (9,171,902 | ) | 2,517,289 | |||||
Cash and cash equivalents, beginning of period | 22,577,942 | 18,606,303 | ||||||
Cash and cash equivalents, end of period | $ | 13,406,040 | $ | 21,123,592 | ||||
Reconciliation of Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Operating Cash Flow and Non-GAAP Diluted Earnings Per Share | ||||||||
Three Months Ended |
||||||||
2015 | 2014 | |||||||
Operating income | $ | 3,013,203 | $ | 1,537,374 | ||||
Depreciation and amortization | 4,090,938 | 4,170,716 | ||||||
Stock-based compensation expense | 2,060,738 | 1,396,274 | ||||||
Change in fair value of contingent consideration | 313,233 | (695,177 | ) | |||||
Restatement-related professional fees | - | 2,093,104 | ||||||
Non-GAAP Adjusted EBITDA | $ | 9,478,112 | $ | 8,502,291 | ||||
Three Months Ended |
||||||||
2015 | 2014 | |||||||
Net cash used in operating activities | $ | (6,275,596 | ) | $ | (8,408,343 | ) | ||
Net short-term advances on International receivables * | 88,837 | - | ||||||
Non-GAAP Adjusted Operating Cash Flow | $ | (6,186,759 | ) | $ | (8,408,343 | ) | ||
* US GAAP requires classification in financing activities despite inclusion in working capital on the balance sheet. | ||||||||
Three Months Ended |
||||||||
2015 | 2014 | |||||||
Net income | $ | 1,138,720 | $ | 289,407 | ||||
Change in fair value of contingent consideration, net of tax | 310,851 | (536,797 | ) | |||||
Restatement-related professional fees, net of tax | - | 1,266,328 | ||||||
Adjusted net income | $ | 1,449,571 | $ | 1,018,938 | ||||
Weighted average shares outstanding, diluted | 53,878,697 | 52,189,091 | ||||||
Non-GAAP Diluted Earnings Per Share | $ | 0.03 | $ | 0.02 | ||||
bmoore@inwk.com
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